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Economics Study Set 8

Business

Quiz 9 :

Comparative Advantage, Exchange Rates, and Globalization

Quiz 9 :

Comparative Advantage, Exchange Rates, and Globalization

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Specialization according to comparative advantage means that a country is producing the goods:
Free
Multiple Choice
Answer:

Answer:

C

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When a country runs a trade surplus, it will:
Free
Multiple Choice
Answer:

Answer:

D

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The balance of trade measures the:
Free
Multiple Choice
Answer:

Answer:

A

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A currency has depreciated in value if it takes more of a foreign currency to buy it.
True False
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The more competition there is in international trade, the larger the traders' proportion of the gains from trade.
True False
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If Americans demand goods produced in Mexico, it leads to a demand for Mexican pesos and a supply of U.S. dollars on the foreign exchange market.
True False
Answer:
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The United States has a trade deficit when the value of the goods and services we import exceeds the value of the goods and services we export.
True False
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Economic models take into account the effect of trade on the distribution of income.
True False
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Countries can expect to gain from international trade as long as they:
Multiple Choice
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Immediately after World War II, the United States ran trade:
Multiple Choice
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We can conclude from the table shown that Morocco has a comparative advantage in the production of tables. img
True False
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When a country runs a trade deficit, it does so by:
Multiple Choice
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We can conclude from the table shown that Spain has a comparative advantage in the production of tables. img
True False
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Globalization represents:
Multiple Choice
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Manufacturing wages have risen significantly for 20 years.
True False
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Suppose foreign shrimp prices drop by 32 percent and importers gain a 90 percent market share. From this information, what would economists strongly suspect about this industry?
Multiple Choice
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People with intellectual property rights are on the low end of the income distribution that is created from globalization.
True False
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Refer to the table shown. From this table we can conclude that: img
Multiple Choice
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Refer to the table shown. From this table we can conclude that if the two countries trade with each other, it is most likely that: img
Multiple Choice
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Smaller countries tend to get a larger share of the gains from trade than do larger countries.
True False
Answer:
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